Banking on Digital Growth
Banking on Digital Growth

Episode · 1 year ago

31) #InsideDigitalGrowth: The Digital Advertising Industry's Dirty Little Secret


I predicted the demise of digital ads three years ago. And I was right.

Recent changes to Google's ad policy have added restrictions around targeting, and the federal government is cracking down harder on big tech. In light of all that, are digital ads still worth it?

On this episode of the Banking on Digital podcast, I answered a question from Michael about digital ads — the industry's dirty little secret.

I talked about:

  • Why the coming cookie apocalypse will change the ad landscape for financial brands
  • Two things you can do to stay on top of Google Ads' new policy
  • What will replace ads in the digital marketer's toolbox

You can find this interview, and many more, by subscribing to Banking on Digital Growth on Apple Podcasts, on Spotify, or here.

Michael ask: What's your opinion ondigital ads today? Are they worthwhileoris the market too saturated?Now, L hit's a great question Michael and one that'll answer for you on today's episode of banking on Digital Growth, you're listening to banking, on digitalgrowth, with James Robert Lay a podcast that empowers financial brand marketingsales and leadership teams to maximize their digital growth potential bygenerating ten times more loans and deposits. Today's episode is part ofthe inside digital growth series, where James Robert Cheers answers to some ofthe biggest digital marketing and sales questions he gets from the digitalgrowth community have a question you want to get answers to on a futureepisode visit, www dot, go ask jr dcom to submit your question today. Now,let's go inside digital growth greetings in hello! Thank you fortuning into the thirty first episode of the banking on digital growth pod castwhere I James Robert, lay your digital anthropologist think through theresearch we continue to do here, research that is rooted at the centerof Marketing Cells, technology and here's the wildguard human behavior ina digital world, and we do this research with one primary goal in mind:to provide you with clarity through education and insights, practical insights that guide you Fordalong your digital growth journey and really empower you to generate tentimes more loans and deposits by simplifying digital marketing and sellstrategies. Here's why, because into days ever growing, confusing digitalworld simplicity, simplicity is the path Ford to escape complexity andchaos. Today's episodeis part of the insidedigital growth series, where I want to help you to escape that complexity inchaos by answering a question from Michael who is an a VP of marketingfour financial brand in the Midwest. Once again, Michael Ask: What's youropinion on digital ads today? Are they worth while, or is the market toosaturated? Now, thanks again for the great question, Michael and it's onethat I've been thinking deeply about for the last twelve to eighteen monthsas the digital ad game is really being disrupted and turned upside down onmultiple fronts. Right now, in fact, going back three years I hadpredicted the demise of digital ads. Thanks to at that time was was reallytwo things. ADBOTTS and ad blockers were going to destroy Ad Bys, but whathas got me thinking more about digital ad disruption. Today? Is the recentchanges coming from Google's AD policies that will be going into effecton October nineteenth to thousand and twenty, which is right around the timethat we're going to be publishing this pod cast so for some contexts of what'sgoing on and to get everyone up to speed before I share my perspective ondigital ads and really, if there even ads, are still worth investing intointoday's saturated market googles. Up to this point, Google'spersonalized advertising has targeted users with more relevant content and,as a result, they've improved the experience for people while increasingRoi for advertisers and as a result, what is Google gainedmoney a whole lot of money, but here's the thing this new ad policythat's coming out in October twent, an...

...twenty is going to add restrictions that are important for financial brandsto be aware of when it comes to targeting according to Google, and I quote, andan effort to improve inclusivity for users disproportionally affected bysocietal, biases, housing, employment and credit cards or services that cannolonger be targeted to audiences, based upon five things, number one: GenderNumber, two age Nub: Three pernal status, number four marital status andthe number five Zipcode endqute. No. For the past ten years, googles adpolicies have prevented brands from targeting people base upon theiridentity, their beliefs, their sexuality n. In reality, I'm notsurprised at all by COUGLE'S NEW AD policy updates. Once again, three yearsago, I had predicted the debise of ads because of the rise of AD botts and adblockers were already starting to destroy ad bys. But what I did not seeat the time was the fight that we're seeting rightnow for consumer privacy and the control of personal data becoming areally big part of this narrative that has been further driven by increasinggovernment regulations so for some context, many of the ad policies thatwere seeing and Hale seen over the last twelve months. Those changes and we'llprobably continue to see, go back to t O thosand and sixteen. It was a propublical report where bepropablica found that facebook was allowing theplacement of housing ads that excluded certain ethnic affinities. Then, inMarch of Twenty nineteen, the Department of Housing and UrbanDevelopment charged facebook with housing discrimination and when theydid this, they put Google and twitter on alert and some of these other bigmajor digital ad platforms. Why is it important to understand thispart of the narrative, even at a high level? What difference does this make to youas a financial, brand, marketing or or leadership team member ters? Why these government regulations threatenthe profits of the biggest technology players? Basebook n Google, even Amazon as theirprofits, are closely tied to add revenue, so it all comes down to that one thing:it all comes down to money. In addition to these recentpalshy changes from Google and facebook was last year. Financial BrandMarketing and leadership teams must be aware of what I had talked about before andpredicted three years ago. It's that rise in adfraud and rise andadd blockers. Adfraud Adfraud is the digitaladvertising industries dirty little secret. No one wants to talk about it.Platforms, don't want to talk about it, thead networks and atic changes. Theydon't want to talk about it. DIGITAL AD agencies, don't want to talkabout it, but here's the question why, once againlike before with government regulations, there are billions and billions andbillions of dollars at play. According to payments, dotcom quote: The GlobalDigital Ad Market is expected to be valued at two hundred and twenty fivebillion dollars by twoent a twenty. That's one fourth of a trillion continued the QORT. So it's no wonder:fraudsters are trying to still a piece of the Pie. Payments Com continuesadvertisers, and this is important to... attention. Advertisers will lose aprojective five point: eight billion to forty two billion to fraudszters thisyear alone. Inquote. Now we could overlay those insightswith other sources. For example, e Marketor dotcom found that even thoughfraud detection is difficult to track and it is but we've we've been able toidentify it multiple times for financial brands in our program, advertisers are still estimated to losebillions in thosandand twenty alone. Now the challenges of Adfraud and- andI could do a few very deep level pod cast just around that subject matteralone- are further compounded by the continued rise in AD blockers, ADblockers being a subject that I'm Gong to come back to here in a momentbecause to top all of this off, we have what is called the coming.Cookie pocalypse now bear with me for a moment, because I'm just going to getslightly technical for contextural purposes about what's going on at themackrel level, because it is important to understand how the pendingcookiepocalypse will indeed impact your financialbrands future digital growth potential. In January twent ad twenty Google madea big announcement when they shared that they were phasing out thirdparty cookies over the next two years, and no I'm not talking about chocolate,ship or macadamian nut. I'm talking about Internet cookies because withgoogles phasing out of third party cookies cookies being used to help trackbrowser data, the consumer data consumer data with Google will now becentalized in only accessible when chrome determines a consumer does not want to be tracked anonymously,but who doesn't want to be anonymous on the Internet? So what does this mean for financialbrand? It's exactly what I predicted three years ago. Digital ads are going to be even lesseffective and a cookie pocalypse is going to change the entire ad landscapefor the exchanges for at agencies and, most importantly, for your financialbrand and here's. Why cookies are used by web browsers, andit is the cookies that empower your financial brand to save data about whatpeople are doing on your website? TIRT party cookies are also placed byadvertisers, and a website can use a variety of different third partycookies to collect information on consumers, digital activity and withGoogle phasing out third party cookies. The consumer data once again will onlybe accessible and cintralized whenever chrome determines a person does not want to be anonymous. What does decision means? Fourfinancial brands is that it will render digital ads and ad targeting even moreless effective. Now thecoming, Google Cookie pocalyps. Does it come as asurprise? An it actually follows trends from other browsers like safari,because safari is shipping with native adblockers installed in twentyseventeen apples native browser, which is Safari, they enterd introduce,what's called ITP and it's intelligent tracking protection and also cookietime limits. Then, in September, Twenty Nineteen Firefox introduced, what'scalled ETP or enhanced tracking protection that blocks third partycookie. So in essence, Google was late... the game to prevent third partycookie tracking, but of course, there's a reason for this delay once again.There's that word money, those billions and billions and billions of dollars. Italked about before no, when apple released ITP through safari, theydidn't really receive much flat at all, if any, because at the time safari hada much smaller share of the browser market, N and so far as ITP actuallyaligns with apples mission of protecting users, data and so now appleis once again applying their mission of protecting users data with an upcomingIo's fourteen update that will further prevent companies like Google andfacebook and others from collecting your digital ad identifier, which, withwithout having someone's permission because now going forward, apps, willbegin to PROMP APS on the Iphon wil begin to propt. If someone wants tohave their digital behavior tracked, what's again, who wants to be trackedon the Internet? The most important thing to note inthis big tech showdown is that apples revenue model is nottied to or is dependent on, digital at see, that's the biggest differencebetween apple and comparing them say to a facebook or a google or even anAmazon, because their ad are their revenuemodels. Google, facebook Amazon are in fact based on their ad models, so consider this too Google owns almostsixty percent of the market share with chrome and when it comes to Googlephasing out third party cookies. My bet my bet is: Google is doing thisfor their own good, not for the good of brands and not even really for the goodof consumers, even though it's position that way because they're doing thisplay because they know, if they're going to be able to drive, add revenueaway from facebook ads and more revenue into Google's paid search model technology has transformed our world,and digital has changed the way consumers shot for and buy financialservices forever. Now consumers make purchase decisions long before theywalk into a branch if they walk into a branch at all, but your financial brandstill wants to grow loans and deposits. We get it. Digital growth can feelconfusing, frustrating and overwhelming for any financial brand marketing insales leader, but it doesn't have to because James Robert wrote the bookthat guides you every step of the way along your digital growth journey visit,www, dot, digital growth, dotcom to get a preview of his best selling bookbanking on digital growth, or order a copy right now for you, and your teamfrom Amazon inside you'll find a strategic marketing manifesto that waswritten to transform financial brands and it is packed full of practicalandprovent insights. You can start using today to confidently generate tentimes more loans and deposits now back to the show. So in summary, we have some foundationalcontext of all of the challenges. A and Theye are some technological challenges,driving this impacting the digital adspace for financial brands and andonce again brief review. Three major things happening at the macrol level.Number One government regulations forcing changes and around how you cantarget audiences on platforms like Google and facebook number two: Therise of adblockers and bought traffic,...

...further, destroying the ability toeffectively target and place ads and the number three once again the comingcookie pocalypse. It's not chocolate ship or macadamian nut as Google phasesout third party cookies within the browsers. So the big question is: Where do you gofrom here as a financial brand marketer or a leadership to team member thinkingabout your future digial growth strategies when it comes to digital ad policies? It's going to become even moreincreasingly difficult for financial brand marketing team,specifically to keep up with all of these ongoing changes with ad policiesand and only managing those changes managing digitalads strategies. Internally, the placement, the budgets w those will bethe ones who are most likely to be internally aware of all of thesechanges, because oftentimes when you log into the ad account of whether t befachbook or Google, you typically notified of those changes. So that's why the biggest challengehere when the AD policy changes, the ADSTRATEGY, must change. But what, if you're, not managing yourad accounts internally, see financial, BA and markting teams are alreadystretched so thin and I'm understanding and impathetic of the fact that manyjust don't simply have the time to stop to learn to apply those learnings goingforward and, as a result, they end up in the circle of chaos. They fillconfuse, they feel frustrated, they fell overwhelmed N, and this is whynumber one investment and ongoing training must become essential piece for amarketing team's gross strategy because of all the exmenental changes that areoccurring and will continue to occur throughout all different channels inmediums of digital and number two, and just as closely important to justongoing training, N Education of financial brands of marketing teams. Atheir adaptability quotion will be a competitive advantage as they are goingto have to quickly pivot and a quickly transform strategies and even habitsbased upon the training education that they receive. Furthermore- and thiscomes back to, are you managing your Ad Accounts Internally, O r or yousourcing them to a third party? There is a level of risk for many small tomid size, asset financial brands who are relying on third party digital adagencies to manage the implementation of ad strategies because, as thoseadrules will continue to change, the big question here is: Will the digitalad agencies provide recommendations on the next best steps forward, or arethey going to just simply await the orders from their financial brandclients? So when we look at what are the risk here,you can go and you can read the policy from Google, but a couple of things to note and really the most importantthing to note and most troubling, unlike others, is the fact that Google shares accountsmay be suspended if we find violations of our policiesor the terms and conditions within that policy. Andqu, that's from Google, so just like with facebook, the policy changes from Google, it's becoming very crystalclear, who has all the power and the...

...control in the digital space, and it'snot financial brands. All audience types coming back to thisupcoming policy, that's taking place in October, twenty twenty all audiencetypes are going to be negatively impacted by this update. For example, financial brands will nolonger be able to use in market audiences like they once were, able toto reach people who might be close to completing a purchase for a home or acar using age or Zipcode, and this will also impact the credit category as well,because you know financial brands that use theGoogle ad network to generate awareness and TRAFPIC and leads for auto loansfor credit cards for homes. Those are the three typically, the three biggestrevedue drivers for interest income on the consumer side of a financial brand.So what can you do about all of this? Where can you go from here? Two quick thoughts, number one and sure you are not in violation ofGoogle's new AD policy once again targeting around Ginger Age, pernalstatus, marital status, Zitcode on any of your current or active campaigns,and if you're not managing this internally, be sure to go and talk withyour digital ad agency. Take a proactive step because, once again, Google has the potential to ban accounts that are in violation ofthese policies. That's like cutting off a whole nother area of of revenue,growth, Neber two to prevent any potential problems or flagging orpossible s suspensions. Be sure that as you go in and you talkwith your ad agencies or you talk with yourinternal teams, start thinking about the future and that's why I want tocome back to Michael's question what your opinion on digital adsMichael ask: Are they still worthwhile, or is the market too saturated? Let's look towards the future. It'stime to look beyond digital ads as digital ads are really just ahangover from traditional broadcast marketing force into a digital medium,utilizing direct response, marketing strategies, for example. I do a I place, a digital ad, and then Iexpect to get b alone or deposit sure direct response, and I see a lot ofthis conversation happening at the leadership level. 'CAUSE, there's justa lack of awareness and understanding of of the changes that have happened atthe consumer level when it comes to marketing a d cells because, yes, backin the day, direct response might have worked before the Internet before therise of the empowered consumer. But we know it, you know it 'cause, you are one,consumers are empowered, consumers are educated, consumers are informed andtheir buying journeys for loans and deposit products have become much morecomplex than just having two points on the buying journey. You know broadcastmarketing, AD driving traffic into physical branch location, and thensomeone gets the loan or opens up the checking account. In fact, digital consumer journeys are made upof micro journeys that a consumer has to navigate through and we think aboutjust the micro journey of the consideration stage of loan. It's ter'sa lot of of complexity tied into that. Furthermore, when we think aboutdigital ads and when we review digital, add strategies, theyare, often rootedin the nartacistic marketing model,...

...that I write about in my book, banking,on digital growth, where all the financial bran a wants to do is justpush product and the problem is, you know, pushing product downs downpeople's throats? Is it's one that I provide a prescriptionin a cre to in episode? Nu Thirteen of this pod gas titled High Pressure,Marketing and sell strategies? Simply don't pay, and I talk through thealternative solutions. Two pushing products down people's throats with asimple mantra, help first and sell second. This is why I predict thatemail, an also organic s, e O, is about to go through their second Golden Ages,as ad challenges will continue to increase in the years to come and allof the environmental changes that were seeing within the digital adspace. It Ccreelly creates a tremendous opportunity, four financial brands tobreak free from that narsacistic direct response, marketing and start tocollaborate with consumers to collaborate with people. Yes, with all of the digital ad changes,we've seen and wi'll continue to see, whether that be from governmentregulations to add bots, to add blockers to the penning cookiapocalypse, perhaps the days of pushing and promoting commoditized productsonce again that Flod idea held over from the legacy days of broadcast anddirect response marketing those days might just finally be overand that's why now now is the time for financial brand marketing forleadership teams to compely commit to helping first and selling. Second, inthis digital world, the path Ford, four financial brand marketing teamspecifically is rooted in transforming markeing departments to operate morelike content and media departments, content will drive organic search whilethe email, another content initiative, more specifically, email marketing,automation strategies will be used for hypertargetingpurposes just like ads, but through a differentcontext through a different medium and the good news here with email is thatemail is an asset your financial brand owns, while ads are least from someone else'sdigital property and real estate. They control the game. This is why emailmust be viewed going forward as a strategic asset where we start to placea monetary value on your financial brands, email database, and you splitthat data base up into really three distinct, buckets and and unpaximore ofThi teaking on a future pod get specifically around EMA marketing.'cause I've been getting some questions about that. But if we look at thosethree buckets, you have your actively engaged email accounts of those thathave an account with you. You have your unengaged emails, but they have anaccount with you, but they're not actively engaged or opening up youremails or clicking on your emails. And then you have your perspective databasewhere that to me is a tremendous opportunity to collect emails and wewould call them these marketing qualified, leads to begin to buildrelationships with these people and and use their digital activity to helpserve them. The right content, the right message at the right time for theright product in their own buying journey, so when we think about the emaildatabase being an asset. The same is also true for content, specificallystrategic evergreen content pieces that...

...can create exponential value throughorganic search and particularly over and extended period of time, but andhere's the big butt, because this is important, viewing email and content asa valuable strategic asset, one that goes far beyond traditional digital ads. This will only happen when a commitmentfrom the top inpowers marketing teams to create space and time to build thosedigital assets, those audiences, those communities that their financial brandowns. Not Third Party is like facebook andGoogle, and then also empower their digital, sells teams to use the contentthat their marketing teams are producing and use those cells teams asa medium to share and distribute that content with their own personal social networks, see just likemarketing is being transformed so to digital cells really sells, for thatmatter is also being transformed and there's such a tremendous opportunityfor marketing and sells teems to start aligning more closely together andcreating value together. As always, if you have a question likeMichael, I want to hear from you, because I want to help you just go to www dot, go ask a Jr com,submit your question and I will answer it for you on a future. PODCAST episodeand remember. The only bad question is the question that goes unasked untilnext time be well, do good and wash your hands. Thank you for listening to anotherepisode, banking on Digital Growth, with James Robert Lay like what youhear tell a friend about the podcast and leave us a review on apple podcast,Google, podcast or spotify, and subscribe, while you're there to geteven more practical, improven insights visit, W ww Don digital growth, dcom tograb a preview of James Robert's, best selling book banking on digital growth,or order a copy right now for you and your team from Amazon inside you'llfind a strategic marketing in sales blueprint framed around twelve keyareas of focus that empower you to confidently generate ten times moreloans and deposits. Until next time be well and do good.

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